CVS Health Shares on Pace for 52-Week Low After Cutting Earnings Forecast

By Denny Jacob

CVS Health shares edged down 3.1%, to $70.51, after downgrading its earnings projection for the year due to the effect of its biggest deals since the nearly $70 billion takeover of Aetna in 2018.

The healthcare company's stock is on pace for a 52-week low and its lowest close since March 4, 2021, when it closed at $69.17.

CVS cut its full-year outlook, guiding for adjusted earnings per share between $8.50 to $8.70, compared with its prior guidance in the range of $8.70 to $8.90.

CVS on March 29 completed the nearly $8 billion acquisition of Signify Health, adding in-home services to its offerings. On Tuesday, the company closed its $10.6 billion deal for Oak Street Health, an operator of primary-care clinics for seniors. The company said it might look at further acquisitions in the future, but would focus on digesting Signify and Oak Street in the near term.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

May 03, 2023 14:17 ET (18:17 GMT)

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